VALUation OF IMPORTED GOODS
The Customs value is the value to be used when goods are imported into Australia.
WHAT IS THE CUSTOMS VALUE
USED FOR?
The Customs value is:
• the basis for calculating ad valorem customs duty
• combined with other items, including customs duty,
international transport and insurance costs and, where
applicable, Wine Equalisation Tax, to produce the value of
the taxable importation (which is used to calculate the Goods
and Services Tax)
• published by the Australian Bureau of Statistics to show trade
to and from Australia,
• used in other economic reporting
HOW ARE GOODS VALUED?
The most common method for valuing any import is to
use the ‘transaction value’, which is the price the importer
actually paid (or is going to pay) for the goods.
A number of conditions must be met to use the transaction
valuation method. For example, the buyer and seller are
not related, where the buyer and seller are related, their
relationship has not affected the price of the imported
goods. The transaction value can involve deductions or
additions such as commissions or royalties.
When the transaction value cannot be used, one of these
alternative methods will be used to determine the Customs
value:
1) Identical goods value – the price of identical goods sold
for export to Australia.
2) Similar goods value – the price of similar goods sold for
export to Australia
3) Deductive value – the price in a sale in Australia of the
imported goods, identical goods or similar goods. This
price must be adjusted for costs etc incurred between
the “place of export” and the sale in Australia.
4) Computed value – this is based on the price of
producing the goods, general expenses, other costs
and profits relating to the imported goods
5) Fall-back value – where no other methods are suitable,
Customs and Border Protection will determine the value
by taking into account the above valuation methods and
any other relevant information.
ARE FREIGHT AND
INSURANCE COSTS INCLUDED?
The Customs value does not include freight and insurance costs
in transporting the goods from the ‘place of export’ to Australia.
However, any inland freight and inland insurance costs incurred
by the purchaser before the goods leave the ‘place of export’ are
included in the Customs value.
WHAT IS THE PLACE OF EXPORT?
The place of export can include:
• where the goods are posted from
• where the goods are packed in a container (as defined in the
Customs Convention on Containers)
• the place, or last place, from which self-transported goods
departed for Australia
• the place, or first place, the goods were placed on board a
ship or aircraft for export
• where the goods crossed the border of the exporting country.
In any other cases, the place of export will be determined by
Customs and Border Protection.
ARE PACKING COSTS INCLUDED?
FOR MORE INFORMATION
The cost of packing overseas, such as labour and packages, is
included in the Customs value of the goods.
A penalty may apply where incorrect Customs values are
declared. If you are unsure how to value particular goods,
Customs and Border Protection officers are available to assist
you.
The cost of containers (as defined in the Customs Convention on
Containers) and pallets imported temporarily are not included in
the Customs value.
RATE OF EXCHANGE
For information on any Customs and Border Protection matter,
contact the Customs Information and Support Centre on
1300 363 263, email information@customs.gov.au or browse our
website www.customs.gov.au.
The Customs value must be in Australian currency. If the invoice
is not in Australian dollars then use the rate on the day the goods
were exported, as published in the Commonwealth of Australia
Gazette. The rates of exchange are also available from
www.customs.gov.au.
If there is no rate available through these channels, the
conversion rate will be the ruling rate determined by Customs
and Border Protection.
IMPORT DOCUMENTATION
Customs and Border Protection does not usually require
importers to submit commercial documentation.
However, the owner of the imported goods must keep all relevant
commercial documents while the goods are subject to Customs
and Border Protection control and for five years after the goods
have entered Australia for consumption. This helps Customs and
Border Protection to make sure owners provide correct details
when entering their goods.
RELATED FACT SHEETS
You can access the following related fact sheets from
www.customs.gov.au,
• Valuation treatment of production assist costs
• Valuation of free-of-charge goods
RELEVANT LEGISLATION
This information is intended only as a guide and has no legal
force. Full details relating to the valuation requirements are
contained in the Customs Act 1901.
Our valuation system is based on the World Trade Organization
(WTO) Valuation Agreement – the system used by major trading
nations throughout the world. Sections 154 through to 161L of the
Customs Act 1901 reflect the WTO Valuation Agreement.
April 2011